PRIVATE PROMOTERS’ SHARE AT 2-YEAR HIGH IN TELLING SIGN OF MARKET BOTTOMING, MFs AT YET ANOTHER HIGH, FII AT 14-YEAR LOW, LIC AT ALL TIME LOW IN JUNE QUARTER

AHMEDADAB, AUGUST 4: The share of promoters of private sector companies in companies listed on NSE reached a 2-year high of 41.36 per cent as on June 30, 2026, up from 40.58 per cent as on March 31, 2026, as per primeinfobase.com , an initiative of PRIME Database Group. According to Pranav Haldea, Managing Director, PRIME Database Group, this is a telling sign of the market bottoming out, with their share rising after having declined in an almost secular manner from December 31, 2021 onward when it stood at 45.20 per cent. While the share of ‘Indian’ private promoters had gone down from 36.82 per cent as on December 31,2021 to 32.12 per cent as on March 31, 2026, the share of ‘foreign’ promoters had gone up marginally from 8.38 per cent to 8.45 per cent during this period. This has now increased to 32.48 and 8.93 per cent respectively as on June 30, 2026. These private promoters bought shares worth INR 36,336 crore on a net basis* during the quarter, the highest since quarter ending June 2022.

Meanwhile, the share of Domestic Mutual Funds (MFs) in companies listed on NSE, through which mostly individual investors invest indirectly, reached yet another all-time high of 11.58 per cent as on June 30, 2026, up from 11.46 per cent as on March 31, 2026), the twelfth consecutive quarter of increase. According to Haldea, this is a further sign of individual investors being convinced that mutual funds sahi hai (Mutual Funds are the right option). Despite markets being broadly range-bound over the last couple of years, it will be interesting to see if they continue with the faith and pumping in ~INR 30,000 crore on a monthly basis through Systematic Investment Plans (SIPs).

The share of Foreign Institutional Investors (FIIs)^, on the other hand, further declined to a 14-year low of 15.88@ per cent as on June 30, 2026 (from 16.12 per cent as on March 31, 2026).

MFs have continued to narrow the gap with FIIs with the gap in their share declining by another 37 basis points in the quarter ending June 30, 2026 to reach just 4.30 per cent. The gap has nearly halved in the last two years alone from 8.75 per cent as on March 31, 2024. At its peak, the gap was 17.14 per cent on March 31, 2015 with FII share at 20.70 per cent and MF share at just 3.56 per cent. According to Haldea, the balance of ownership continues to tilt inward, reinforcing the market’s growing atmanirbharta (self-reliance), with MFs alone set to overtake FIIs in the coming quarters. This trend started with demonetization in 2016, accelerated during Covid years and has further increased in the last couple of years due to geopolitical issues and valuation concerns of FIIs, amongst others. MFs, flush with retail money coming through SIPs, invested INR 1.42 lakh crore during the quarter on a net basis with FII outflows at INR 1.43 lakh crore (outflow of INR 1.53 lakh crore in secondary market and inflow of INR 10,096 crore in primary market).

Despite the rise in the share of MFs and also a net investment of INR 2.19 lakh crore during the quarter, the share of Domestic Institutional Investors (DIIs)#as a whole, after increasing for 9 consecutive quarters, declined to 19.15 per cent as on June 30, 2026, down from 19.24 per cent as on March 31, 2026. This was primarily due to the share of Insurance companies falling from 5.42 per cent to 5.16 per cent during the quarter, despite a net buy* of INR 20,228 crore. Life Insurance Corp. of India (LIC)$ continues to command a lion’s share of investments in equities by insurance companies (at least 67 per cent share or INR 16.30 lakh crore). LIC’s share (across 284 companies where its holding is more than 1 per cent), decreased to an all-time low of 3.48 per cent as on June 30, 2026 from 3.72 per cent as on March 31, 2026, despite a net buy of INR 8,137 crore during the quarter. Nevertheless, LIC continues to be India’s largest single asset manager with its equity holding being nearly twice the size of the equity holdings of India’s largest Mutual Fund.

The share of individual investors (retail and High Net Worth Individual (HNI)**combined) increased to 9.51 per cent as on June 30, 2026, up from 9.11 per cent as on March 31, 2026. While the share of retail investors increased from 7.12 per cent to 7.39 per cent, the share of HNI investors increased from 1.99 per cent to 2.12 per cent during the quarter. Individual investors were net buyers to the tune of INR 25,625 crore during the quarter.

According to Haldea, for years, FIIs had been the largest non-promoter shareholder category in the Indian market with their investment decisions having a huge bearing on the overall direction of the market. This is no longer the case. DIIs along with Retail & HNIs have played a strong countervailing role with their combined share reaching an all-time high of 28.66 per cent as on June 30, 2026. While FIIs continue to remain an important constituent, their stranglehold on the Indian capital market has come down.

DIIs increased their allocation most to Industrials (from 9.05 per cent of their total holding as on March 31, 2026 to 10 per cent of their total holding as on June 30, 2026) while they decreased their allocation most to Information Technology (7.55 to 5.83). FIIs increased their allocation most to Financial Services (30.78 to 33.23) while decreasing their allocation most to Information Technology (6.19 to 4.76).

Finally, the share of the Government (as promoter) decreased to a 3-year low of 8.83 per cent from 9.42 per cent during the quarter. The Government was a net seller to the tune of INR 19,468 during the quarter, primarily through Offers for Sale.

There were 27 companies in which the trinity of Promoters, FIIs and DIIs all increased their stake during the quarter these being (in descending order by market capitalisation) Adani Enterprises, GMR Airports, Cupid, Sterlite Technologies, IRB Infrastructure Developers, Deepak Nitrite, Zydus Wellness, Welspun Living, Religare Enterprises, IOL Chemicals & Pharmaceuticals, Yasho Industries, Gandhar Oil Refinery, United Foodbrands, Eveready Industries, Confidence Petroleum, BLS E-Services, Nintec Systems, Ivalue Infosolutions, Aeroflex Enterprises, Bhagyanagar, Renaissance Global, Arrow Greentech, Zim Laboratories, Sheetal Cool Products, Visa Chrome, Shah Metacorp and Cybertech Systems & Software.

  retail investors are individuals with up to INR 2 lakh shareholding in a company and HNI investors are those with more than INR 2 lakh holding

includes domestic MFs, Insurance Companies, Banks, Financial Institutions, Pension Funds, Non-Banking Financial Companies (NBFCs), Domestic Sovereign Wealth Funds (SWFs), Asset Reconstruction Companies (ARCs) etc.

includes Foreign Portfolio Investors (FPIs), Foreign Direct Investment (FDI), Foreign SWFs and ownership through Depositary Receipts (DRs) held by custodians

calculated by multiplying the difference in March and June shareholding by the volume weighted average closing price during the quarter

LIC’s shareholding details are only available where its holding in a company is greater than 1 per cent

Who is the wisest of them all?

Note: This analysis is based on Shareholding Patterns filed by 2340 of the total 2397 companies listed on NSE (main board) for the quarter ending June 30, 2026. As on July 22, 2026, 57 companies were still to file their shareholding patterns. The data coverage is from June 2009 onwards.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો. વધુમાં અત્રે પ્રગટ થયેલા કોઇપણ સમાચાર કે વિગતો સાથે businessgujarat.in અંશતઃ કે સંપુર્સણપણે સહમત નથી.)